dmertz
Level 15

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Expanding on what Mike9241 said, only $9,300 of the $10,300 distribution is permitted to be reported as an HFD.  The other $1,000 is an ordinary distribution.  You'll have to enter your spouse's HSA contribution as a personal HSA contribution.

 

If you were under age 59½ at the time of the distribution, the $1,000 that is not permitted to be reported as an HFD will be subject to a 10% early-distribution penalty unless you have an exception that applies.

 

If you were over age 59½, it generally doesn't make sense to report your $9,300 as an HFD either.  With no early-distribution penalty, it generally makes more sense to report it as a personal HSA contribution, avoiding prospect of failing to satisfy the HSA testing period which would result in additional taxes.  If you have no basis in nondeductible traditional IRA contributions, I can think of no reason that it would make sense to report the HSA contribution as an HFD instead of as an ordinary personal HSA contribution.